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UPSC Prelims Past Year Paper 2014: Paper 2 (CSAT) - UPSC MCQ


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UPSC Prelims Past Year Paper 2014: Paper 2 (CSAT) - Question 1

The Himalayan ecosystem is highly vulnerable to damage, both due to geological reasons and on account of the stress caused by increased pressure of population, exploitation of natural resources and other related challenges. These aspects may be exacerbated due to the impact of climate change. It is possible that climate change may adversely impact the Himalayan ecosystem through increased temperature altered precipitation patterns, episodes of drought and biotic influences.

This would not only impact the very sustenance of the indigenous communities in uplands but also the life of downstream dwellers across the country and beyond.
Therefore, there is an urgent need for giving special attention to sustain the Himalayan ecosystem. This would require conscious efforts for conserving all the representative systems.
Further, it needs to be emphasized that the endemics with restricted distribution, and most often with specialized habitat requirements, are among the most vulnerable elements. In this respect the Himalayan biodiversity hotspot, with rich endemic diversity, is vulnerable to climate change.

The Threats include possible loss of genetic resources and species, habitats and concomitantly a decrease in ecosystem services. Therefore, conservation of endemic elements in representative ecosystems/habitats assumes a great significance while drawing conservation plans for the region.
Towards achieving the above, we will have to shift towards contemporary conservation approaches, which include a paradigm of landscape level interconnectivity between protected area systems. The concept advocates a shift from the species-habitat focus to an inclusive focus on expanding the biogeographic range so that natural adjustments to climate change can proceed without being restrictive.

 

Q.Consider the following statements:

According to the passage, the adverse impact of climate change on an ecosystem can be a

1. Permanent disappearance of some of its flora and fauna.

2. Permanent disappearance of ecosystem itself. Which of the statements given above is/are correct?
 

Detailed Solution for UPSC Prelims Past Year Paper 2014: Paper 2 (CSAT) - Question 1

UPSC will always try to trick you giving options that will relate to the passage text, but will be an extreme version of it. For e.g. in statement 2: it says “disappearance of the ecosystem itself”. First statement too is extreme, but you can find its mention in the passage.

UPSC Prelims Past Year Paper 2014: Paper 2 (CSAT) - Question 2

The Himalayan ecosystem is highly vulnerable to damage, both due to geological reasons and on account of the stress caused by increased pressure of population, exploitation of natural resources and other related challenges. These aspects may be exacerbated due to the impact of climate change. It is possible that climate change may adversely impact the Himalayan ecosystem through increased temperature altered precipitation patterns, episodes of drought and biotic influences.

This would not only impact the very sustenance of the indigenous communities in uplands but also the life of downstream dwellers across the country and beyond.
Therefore, there is an urgent need for giving special attention to sustain the Himalayan ecosystem. This would require conscious efforts for conserving all the representative systems.
Further, it needs to be emphasized that the endemics with restricted distribution, and most often with specialized habitat requirements, are among the most vulnerable elements. In this respect the Himalayan biodiversity hotspot, with rich endemic diversity, is vulnerable to climate change.

The Threats include possible loss of genetic resources and species, habitats and concomitantly a decrease in ecosystem services. Therefore, conservation of endemic elements in representative ecosystems/habitats assumes a great significance while drawing conservation plans for the region.
Towards achieving the above, we will have to shift towards contemporary conservation approaches, which include a paradigm of landscape level interconnectivity between protected area systems. The concept advocates a shift from the species-habitat focus to an inclusive focus on expanding the biogeographic range so that natural adjustments to climate change can proceed without being restrictive.

 

Q.Which one of the following statements best implies the need to shift toward contemporary conservation approach?

Detailed Solution for UPSC Prelims Past Year Paper 2014: Paper 2 (CSAT) - Question 2

On first look, it seems that all options except (d) are correct. But the reverse is the case. Read the question carefully. It asks for the ‘need’ to shift, not the ‘cause’ of shifting to contemporary conservation practices. If cause was asked then all except (d) would be correct. So, If you are confused in picking up the right option, you have not read the question carefully. Even a single word can make all the difference.

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UPSC Prelims Past Year Paper 2014: Paper 2 (CSAT) - Question 3

The Himalayan ecosystem is highly vulnerable to damage, both due to geological reasons and on account of the stress caused by increased pressure of population, exploitation of natural resources and other related challenges. These aspects may be exacerbated due to the impact of climate change. It is possible that climate change may adversely impact the Himalayan ecosystem through increased temperature altered precipitation patterns, episodes of drought and biotic influences.

This would not only impact the very sustenance of the indigenous communities in uplands but also the life of downstream dwellers across the country and beyond.
Therefore, there is an urgent need for giving special attention to sustain the Himalayan ecosystem. This would require conscious efforts for conserving all the representative systems.
Further, it needs to be emphasized that the endemics with restricted distribution, and most often with specialized habitat requirements, are among the most vulnerable elements. In this respect the Himalayan biodiversity hotspot, with rich endemic diversity, is vulnerable to climate change.

The Threats include possible loss of genetic resources and species, habitats and concomitantly a decrease in ecosystem services. Therefore, conservation of endemic elements in representative ecosystems/habitats assumes a great significance while drawing conservation plans for the region.
Towards achieving the above, we will have to shift towards contemporary conservation approaches, which include a paradigm of landscape level interconnectivity between protected area systems. The concept advocates a shift from the species-habitat focus to an inclusive focus on expanding the biogeographic range so that natural adjustments to climate change can proceed without being restrictive.

 

Q.What is the most important message conveyed by the passage?

Detailed Solution for UPSC Prelims Past Year Paper 2014: Paper 2 (CSAT) - Question 3

Even though all the options mentioned in the question have been conveyed by the passage, it asks specifically for the ‘important message’ – not ‘concern’, or ‘fact’ etc. Look at the ‘keyword’ here.
If it was ‘most important concern’ in the question, then the answers should have been (c) or (d).
If it was ‘most important fact’, answer would have been (a).

UPSC Prelims Past Year Paper 2014: Paper 2 (CSAT) - Question 4

The Himalayan ecosystem is highly vulnerable to damage, both due to geological reasons and on account of the stress caused by increased pressure of population, exploitation of natural resources and other related challenges. These aspects may be exacerbated due to the impact of climate change. It is possible that climate change may adversely impact the Himalayan ecosystem through increased temperature altered precipitation patterns, episodes of drought and biotic influences.

This would not only impact the very sustenance of the indigenous communities in uplands but also the life of downstream dwellers across the country and beyond.
Therefore, there is an urgent need for giving special attention to sustain the Himalayan ecosystem. This would require conscious efforts for conserving all the representative systems.
Further, it needs to be emphasized that the endemics with restricted distribution, and most often with specialized habitat requirements, are among the most vulnerable elements. In this respect the Himalayan biodiversity hotspot, with rich endemic diversity, is vulnerable to climate change.

The Threats include possible loss of genetic resources and species, habitats and concomitantly a decrease in ecosystem services. Therefore, conservation of endemic elements in representative ecosystems/habitats assumes a great significance while drawing conservation plans for the region.
Towards achieving the above, we will have to shift towards contemporary conservation approaches, which include a paradigm of landscape level interconnectivity between protected area systems. The concept advocates a shift from the species-habitat focus to an inclusive focus on expanding the biogeographic range so that natural adjustments to climate change can proceed without being restrictive.

 

Q.With reference to the passage, the following assumptions have been made:

1. To maintain natural ecosystems, exploitation of natural resources should be completely avoided.
2. Not only anthropogenic but also natural reasons can adversely affect ecosystems.

3. Loss of endemic diversity leads to the extinction of ecosystems.
Which of the above assumptions is/are correct?

Detailed Solution for UPSC Prelims Past Year Paper 2014: Paper 2 (CSAT) - Question 4

Thats a cakewalk. 1 and 3 cannot be correct. So the answer has to be (b). Simple elimination will save you a lot of time and makes your job easy.

UPSC Prelims Past Year Paper 2014: Paper 2 (CSAT) - Question 5

It is often forgotten that globalization, is not only about policies on international economic relationships and transactions, but has equally to do with domestic policies of a nation. Policy changes necessitated by meeting the internationally set conditions (by WTO etc.) of free trade and investment flows obviously affect domestic producers and investors. But the basic philosophy underlying globalization emphasizes absolute freedom to markets to determine prices and production and distribution patterns, and view government interventions as processes that create distortions and bring in inefficiency. Thus, public enterprises have to be privatized through disinvestments and sales; sectors and activities hitherto reserved for the public sector have to be opened to the private sector. This logic extends to the social services like education and health. Any restrictions on the adjustments in workforce by way of retrenchment of workers should also be removed and exit should be made easier by removing any restrictions on closures. Employment and wages should be governed by free play of market forces, as any measure to regulate them can discourage investment and also create inefficiency in production.

Above all, in line with the overall philosophy of reduction in the role of the state, fiscal reforms should be undertaken to have generally low levels of taxation and government expenditure should be kept to the minimum to abide by the principle of fiscal prudence. All these are policy actions on the domestic front and are not directly related to the core items of the globalization agenda, namely free international flow of goods and finance.

 

Q.According to the passage, under the globalization, government interventions are viewed as processes leading to 

Detailed Solution for UPSC Prelims Past Year Paper 2014: Paper 2 (CSAT) - Question 5

Pretty simple. Direct mention has been made in the passage.

UPSC Prelims Past Year Paper 2014: Paper 2 (CSAT) - Question 6

It is often forgotten that globalization, is not only about policies on international economic relationships and transactions, but has equally to do with domestic policies of a nation. Policy changes necessitated by meeting the internationally set conditions (by WTO etc.) of free trade and investment flows obviously affect domestic producers and investors. But the basic philosophy underlying globalization emphasizes absolute freedom to markets to determine prices and production and distribution patterns, and view government interventions as processes that create distortions and bring in inefficiency. Thus, public enterprises have to be privatized through disinvestments and sales; sectors and activities hitherto reserved for the public sector have to be opened to the private sector. This logic extends to the social services like education and health. Any restrictions on the adjustments in workforce by way of retrenchment of workers should also be removed and exit should be made easier by removing any restrictions on closures. Employment and wages should be governed by free play of market forces, as any measure to regulate them can discourage investment and also create inefficiency in production.

Above all, in line with the overall philosophy of reduction in the role of the state, fiscal reforms should be undertaken to have generally low levels of taxation and government expenditure should be kept to the minimum to abide by the principle of fiscal prudence. All these are policy actions on the domestic front and are not directly related to the core items of the globalization agenda, namely free international flow of goods and finance.

 

Q.According to the passage, the basic philosophy of globalization is to

Detailed Solution for UPSC Prelims Past Year Paper 2014: Paper 2 (CSAT) - Question 6

Although direct mention has not been made, its there in the passage in bits and pieces. So while reading the passage, you should be able to grasp the essence of it. Confusion reduces.

UPSC Prelims Past Year Paper 2014: Paper 2 (CSAT) - Question 7

It is often forgotten that globalization, is not only about policies on international economic relationships and transactions, but has equally to do with domestic policies of a nation. Policy changes necessitated by meeting the internationally set conditions (by WTO etc.) of free trade and investment flows obviously affect domestic producers and investors. But the basic philosophy underlying globalization emphasizes absolute freedom to markets to determine prices and production and distribution patterns, and view government interventions as processes that create distortions and bring in inefficiency. Thus, public enterprises have to be privatized through disinvestments and sales; sectors and activities hitherto reserved for the public sector have to be opened to the private sector. This logic extends to the social services like education and health. Any restrictions on the adjustments in workforce by way of retrenchment of workers should also be removed and exit should be made easier by removing any restrictions on closures. Employment and wages should be governed by free play of market forces, as any measure to regulate them can discourage investment and also create inefficiency in production.

Above all, in line with the overall philosophy of reduction in the role of the state, fiscal reforms should be undertaken to have generally low levels of taxation and government expenditure should be kept to the minimum to abide by the principle of fiscal prudence. All these are policy actions on the domestic front and are not directly related to the core items of the globalization agenda, namely free international flow of goods and finance.

 

Q.According to the passage, which of the following is/are necessary for ensuring globalization?

1. Privatization of public enterprises

2. Expansionary policy of public expenditure

3. Free play of market forces to determine wages and employment

4. Privatization of social services like education and health.

Detailed Solution for UPSC Prelims Past Year Paper 2014: Paper 2 (CSAT) - Question 7

Again apply elimination to save time. Statement 2 is ofcourse incorrect. So (b) and (d) are out. Statement 3 is ofcourse correct (you know from the previous answer). So, answer has to be (c).

UPSC Prelims Past Year Paper 2014: Paper 2 (CSAT) - Question 8

It is often forgotten that globalization, is not only about policies on international economic relationships and transactions, but has equally to do with domestic policies of a nation. Policy changes necessitated by meeting the internationally set conditions (by WTO etc.) of free trade and investment flows obviously affect domestic producers and investors. But the basic philosophy underlying globalization emphasizes absolute freedom to markets to determine prices and production and distribution patterns, and view government interventions as processes that create distortions and bring in inefficiency. Thus, public enterprises have to be privatized through disinvestments and sales; sectors and activities hitherto reserved for the public sector have to be opened to the private sector. This logic extends to the social services like education and health. Any restrictions on the adjustments in workforce by way of retrenchment of workers should also be removed and exit should be made easier by removing any restrictions on closures. Employment and wages should be governed by free play of market forces, as any measure to regulate them can discourage investment and also create inefficiency in production.

Above all, in line with the overall philosophy of reduction in the role of the state, fiscal reforms should be undertaken to have generally low levels of taxation and government expenditure should be kept to the minimum to abide by the principle of fiscal prudence. All these are policy actions on the domestic front and are not directly related to the core items of the globalization agenda, namely free international flow of goods and finance.

 

Q.According to the passage, in the process globalization the State should have

Detailed Solution for UPSC Prelims Past Year Paper 2014: Paper 2 (CSAT) - Question 8

D is the correct option.The passage doesnt not mention any of the roles that are given to be undertaken by the state in the process of globalisation. However, it does state that “the overall philosophy of reduction in the role of the state” but it is a mere philosophy.

UPSC Prelims Past Year Paper 2014: Paper 2 (CSAT) - Question 9

The following graph shows.the average profit of two fruit-sellers A and Bin thousands (4) per year from the year 1995 to 2000. 

Q.In which year is the average profit of A and B same?

Detailed Solution for UPSC Prelims Past Year Paper 2014: Paper 2 (CSAT) - Question 9

Where the graph intersects, they have the same value across the y axis (i.e. average profits)

UPSC Prelims Past Year Paper 2014: Paper 2 (CSAT) - Question 10

The following graph shows the average profit of two fruit-sellers A and B in thousands (Rs.) per year from the year 1995 to 2000.

Q.What is the difference between the average profit of B and A in the year 1998?

Detailed Solution for UPSC Prelims Past Year Paper 2014: Paper 2 (CSAT) - Question 10

Since you can’t calculate exact amount, look at the graph closely to first eliminate options (a) and (b). Then average profit of B is ofcourse greater than A. Answer has to be positive. Its (c)

UPSC Prelims Past Year Paper 2014: Paper 2 (CSAT) - Question 11

The following graph shows.the average profit of two fruit-sellers A and Bin thousands (4) per year from the year 1995 to 2000. 

 

Q.How much more average profit did A make in the year 2000 than in the year 1999?

Detailed Solution for UPSC Prelims Past Year Paper 2014: Paper 2 (CSAT) - Question 11

Clear from the graph.

UPSC Prelims Past Year Paper 2014: Paper 2 (CSAT) - Question 12

The following graph shows.the average profit of two fruit-sellers A and Bin thousands (4) per year from the year 1995 to 2000. 

 

Q.What is the trend of the average profit of B from the year 1997 to the year 2000?

Detailed Solution for UPSC Prelims Past Year Paper 2014: Paper 2 (CSAT) - Question 12

Clear from the graph.

UPSC Prelims Past Year Paper 2014: Paper 2 (CSAT) - Question 13

The following table shows the marks obtained by two students in different subjects:

 

Q.The difference in the mean aggregate percentage marks of the students is

Detailed Solution for UPSC Prelims Past Year Paper 2014: Paper 2 (CSAT) - Question 13

Add total marks of student A; divide by total maximum marks- and find the percentage. Do the same for B. You have the answer.

UPSC Prelims Past Year Paper 2014: Paper 2 (CSAT) - Question 14

Examine the following figure:

Detailed Solution for UPSC Prelims Past Year Paper 2014: Paper 2 (CSAT) - Question 14

Pure visual observation. Try tracing the Q figure using pencils in the option figures. It will be easier to find the right one. 

UPSC Prelims Past Year Paper 2014: Paper 2 (CSAT) - Question 15

Consider the following matrix:

 

Q.Which one of the following figures fits into blank part of the above matrix?

Detailed Solution for UPSC Prelims Past Year Paper 2014: Paper 2 (CSAT) - Question 15

The pattern is – of the two arrows in the first column, the second arrow flips by 180 degrees in the next column (second). In the third column, both arrows flip by 180 degrees. 

UPSC Prelims Past Year Paper 2014: Paper 2 (CSAT) - Question 16

The following table gives population and total income of a city for four years:Q.Which one of the following statements correct in respect of the above data?

Detailed Solution for UPSC Prelims Past Year Paper 2014: Paper 2 (CSAT) - Question 16

Simple calculations for every option. You have the answer.

A trick to calculate percentages faster To calculate % growth in population – look at the growth from 1992-1993. Its [(21-20)/20] X 100 = (1/20)X100 = 5%. Now you know that every year the growth is by 1 lakh, but the denominator base (population) is growing. For 1993-1994, its 1/21, for 1994-1995, its 1/22. So as the denominator grows in a fraction, and nominator remains constant, the value of the fraction will be lesser each time i.e. less than 5% for all coming years. So you need not calculate percentage growth for all years and waste your precious time

UPSC Prelims Past Year Paper 2014: Paper 2 (CSAT) - Question 17

Consider the table given below in which the numbers bear certain relationship among themselves along the rows:

 

Q.Which one of the following numbers is the missing number indicated above by X ?

UPSC Prelims Past Year Paper 2014: Paper 2 (CSAT) - Question 18

Consider the following matrix with one empty block in the lower extreme corner:

 

Q.Which of the following figures could fit in the empty block and thus complete the matrix?

Detailed Solution for UPSC Prelims Past Year Paper 2014: Paper 2 (CSAT) - Question 18

The pattern is very obvious. The squares are increasing and circles decreasing in a particular fashion across the next right columns. Extend logically, thats all.

UPSC Prelims Past Year Paper 2014: Paper 2 (CSAT) - Question 19

With reference to the figure given below number of different routes from S to T without retracing from U and/or V (T is the next node after V), is

Detailed Solution for UPSC Prelims Past Year Paper 2014: Paper 2 (CSAT) - Question 19

There are two ways of doing it.
Technique 1: The Long one and obvious You keep counting the number of routes starting from S to U to V to T.
Technique 2: Short cut
Multiply the number of nodes from S, U and V leading towards T. It is 3 X 2 X 3 = 18.
Reason: Each path that you will start on (lets say from S) will have to go through all the paths

Number of ways you can reach U from S is 3. The number of ways you can reach V from U is 2. So the number of ways you can reach from S to V will logically be 3 X 2 = 6. Similarily logically extend it to T, it becomes 6X3 =18.

UPSC Prelims Past Year Paper 2014: Paper 2 (CSAT) - Question 20

Consider the following figures:

 

Q.Change in positions of beads in the figures above follows a sequence. Follows the same sequence, which of the figures look should appear as the fifth figure above?

Detailed Solution for UPSC Prelims Past Year Paper 2014: Paper 2 (CSAT) - Question 20

The sequence followed is like Left (L), Right(R), Top(T) and bottom(B) in cycles for all beads.
Sequence for Top left bead across four figures – LR - BT

For Bottom left bead – RL – TB (total mirror image of top bead)

For Top Right bead – TB – RL (exact reverse of top left bead)

For bottom right bead – BT – LR (total mirror image of the above)

Repeat the same pattern. And you get the answer.
This was a little tricky. But you will have to keep practicing complex patterns until you get a hold of the topic.

UPSC Prelims Past Year Paper 2014: Paper 2 (CSAT) - Question 21

A bell rings every 18 minutes. A second bell rings every 24 minutes. A third bell rings every 32 minutes. If all the three bells ring at the same time at 8 o'clock in the morning, at what other time will they all ring together?

Detailed Solution for UPSC Prelims Past Year Paper 2014: Paper 2 (CSAT) - Question 21

Simple LCM problem. Take the LCM of 18, 24 and 32 which comes out to be 288 minutes i.e. 4 hours and 48 minutes. Add to 8’o clock. The time is 12:48 hours.

UPSC Prelims Past Year Paper 2014: Paper 2 (CSAT) - Question 22

"Price is not the same thing as value. Suppose that on a day the price of everything viz., coal, bread, postage stamps, a day's labour, the rent of houses, etc. were to double. Prices then would certainly rise, but- values of all things except one would not."The writer wants to say that if prices of all things were doubled

Detailed Solution for UPSC Prelims Past Year Paper 2014: Paper 2 (CSAT) - Question 22

The question is a little tricky. But, by simple logic, first you can eliminate options (a) and (b) since the question statement clearly mentions the value of all things would not rise or value of all things would not remain constant.
Now, you can eliminate option (c) by the logic that – the question statement mentions that value of all things except one would rise (so it can’t be halved for all).

So, the answer that you have is (d). Now, you can definitely prove answer (d) by what you study in economics (value of money goes down in inflationary situations), but it is not economics here. Its a critical reasoning question. So be objective. Just follow the question statement and eliminate whatever is illogical or cannot be deduced from the question statement. Although option (d) is not very explicit in the question statement, it sounds better than the other three.

UPSC Prelims Past Year Paper 2014: Paper 2 (CSAT) - Question 23

A and B decide to travel from place X to place Y by bus. A has Rs. 10 with him and he finds that it is 80% of the bus fare for two persons. B finds that he has Rs. 3 with him and hands it over to A. In this context, which one of the following statements is correct?

Detailed Solution for UPSC Prelims Past Year Paper 2014: Paper 2 (CSAT) - Question 23

Rs. 10 is 80% of fare. So actual fare is Rs. 12.50 B gives Rs. 3 to A. So he has Rs. 9.50, i.e. 50 paisa short of bus fare.

UPSC Prelims Past Year Paper 2014: Paper 2 (CSAT) - Question 24

As per agreement with a bank, a businessman had to refund a loan in some equal installments without interest. After paying 18 installments he found that 60 percent of his loan was refunded. How many installments were there in the agreement?

Detailed Solution for UPSC Prelims Past Year Paper 2014: Paper 2 (CSAT) - Question 24

Solve it by simple unitary method. 60% is equal to 18 installments. 1% is equal to 18/60 installments So 100% is equal to (18/60)X100 = 30 installments.

UPSC Prelims Past Year Paper 2014: Paper 2 (CSAT) - Question 25

A worker reaches his factory 3 minutes late if his speed from his house to the factory is 5 km/hr. If he walks at a speed of 6 km/hr then he reaches the factory 7 minutes early the distance of the factory from his house is

Detailed Solution for UPSC Prelims Past Year Paper 2014: Paper 2 (CSAT) - Question 25

You can solve it by two methods.
Technique 1: Pure mathematics Use time, speed and distance equation for both situations.
Let distance of factory from house be X in Kms. Let the ideal time be T in hours. (X/5) = T + (3/60) ..... eqn (i)

(X/6) = T – (7/60) .....eqn (ii) Solving both together, you get (X/5)-(X/6) = 10/60
X/30 = 1/6
X = 5 Km.
Technique 2: Option checking (sometimes easier) Quickly divide each distance (in option) by the two speeds and see the difference. If the net difference in both times is 10 minutes (3 minutes late and 7 minutes early), that is the answer.

UPSC Prelims Past Year Paper 2014: Paper 2 (CSAT) - Question 26

"Liberty, therefore, is never real unless the Government can be called to account when it invades rights."Which one of the following is the best justification of the above statement?

Detailed Solution for UPSC Prelims Past Year Paper 2014: Paper 2 (CSAT) - Question 26

Look at the keyword ‘justification’. So you should choose a statement that can give the best reasoning to validate the question statement.
Quickly eliminate (c) and (d). They are remote to the question statement.
Now option (b) does not justify government invasion on rights. Its more about state as a political unit; political equality and individuality of man.
Left is (a). Again its not very explicit from the question, but thats the best bet we have in tricky critical reasoning questions. 

UPSC Prelims Past Year Paper 2014: Paper 2 (CSAT) - Question 27

Direction 8 for the following 5 (five) items: Read the following two passages and answer the items that follow- each passage. Your answers to these items should be based on the passages only.
Passage -1
In recent times, India has grown fast not only compared to its own past but also in comparison with other nations. But there cannot be any room for complacency because it is possible for the Indian economy to develop even faster and also to spread the benefits of this growth more widely than has been done thus far. Before going into details of the kinds of micro-structural changes that we need to conceptualize and then proceed to implement, it is worthwhile elaborating on the idea of inclusive growth that constitutes the defining concept behind this Government's various economic policies and decisions. A nation interested in inclusive growth views the same growth differently depending on whether the gains of the growth are heaped primarily on a small segment or shared widely by the population. The latter is cause for celebration but not the former. In other words, growth must not be treated as an end in itself but as an instrument for spreading prosperity to all. India's own past experience and the experience of other nations suggests that growth is necessary for eradicating poverty but it is not a sufficient condition. In other words, policies for promoting growth need to be complemented with policies to ensure that more and more people join' in the growth process and, further,· that there are mechanisms in place to redistribute some of the gains to those who are unable to partake in the market process and, hence, get left behind.
A simple way of giving this idea of inclusive growth a sharper form is to measure a nation's progress in terms of the progress of its poorest segment, for instance the bottom 20 per cent of the' population. One could measure the per capita income of the bottom quintile of the population and also calculate the growth rate of income; and evaluate our economic success in terms of these measures that pertain to the poorest segment. This approach is attractive because it does not ignore growth like some of the older heterodox criteria did. It simply looks at the growth of income of the poorest sections of the population. It also ensures that those who are outside of the bottom quintile do not get ignored. If that were done, then those people would in all likelihood drop down into the bottom quintile and so would automatically become a direct target of our policies. Hence the criterion being suggested here is a statistical summing up of the idea of inclusive growth, which, in turn, leads to two corollaries: to wish that India must strive to achieve high growth and that we must work to ensure that the weakest segments benefit from the growth.

 

Q. The author's central focus is on

Detailed Solution for UPSC Prelims Past Year Paper 2014: Paper 2 (CSAT) - Question 27

Just focus on getting the essence and overview of the passage while reading. Such questions will be a cakewalk for you.

UPSC Prelims Past Year Paper 2014: Paper 2 (CSAT) - Question 28

Passage -1
In recent times, India has grown fast not only compared to its own past but also in comparison with other nations. But there cannot be any room for complacency because it is possible for the Indian economy to develop even faster and also to spread the benefits of this growth more widely than has been done thus far. Before going into details of the kinds of micro-structural changes that we need to conceptualize and then proceed to implement, it is worthwhile elaborating on the idea of inclusive growth that constitutes the defining concept behind this Government's various economic policies and decisions. A nation interested in inclusive growth views the same growth differently depending on whether the gains of the growth are heaped primarily on a small segment or shared widely by the population. The latter is cause for celebration but not the former. In other words, growth must not be treated as an end in itself but as an instrument for spreading prosperity to all. India's own past experience and the experience of other nations suggests that growth is necessary for eradicating poverty but it is not a sufficient condition. In other words, policies for promoting growth need to be complemented with policies to ensure that more and more people join' in the growth process and, further,· that there are mechanisms in place to redistribute some of the gains to those who are unable to partake in the market process and, hence, get left behind.
A simple way of giving this idea of inclusive growth a sharper form is to measure a nation's progress in terms of the progress of its poorest segment, for instance the bottom 20 per cent of the' population. One could measure the per capita income of the bottom quintile of the population and also calculate the growth rate of income; and evaluate our economic success in terms of these measures that pertain to the poorest segment. This approach is attractive because it does not ignore growth like some of the older heterodox criteria did. It simply looks at the growth of income of the poorest sections of the population. It also ensures that those who are outside of the bottom quintile do not get ignored. If that were done, then those people would in all likelihood drop down into the bottom quintile and so would automatically become a direct target of our policies. Hence the criterion being suggested here is a statistical summing up of the idea of inclusive growth, which, in turn, leads to two corollaries: to wish that India must strive to achieve high growth and that we must work to ensure that the weakest segments benefit from the growth.

 

Q.The author supports policies which will help 

Detailed Solution for UPSC Prelims Past Year Paper 2014: Paper 2 (CSAT) - Question 28

Options (a) and (b) can be eliminated right away. (b) talks about “irrespective of rate of growth”.
Option (c) says, “redistribute to those left behind”. But that is not what the author is trying to say. In the whole passage, he keeps talking about the growth of the poorest segments first. So, (d) has to be the answer.

UPSC Prelims Past Year Paper 2014: Paper 2 (CSAT) - Question 29

Passage -1
In recent times, India has grown fast not only compared to its own past but also in comparison with other nations. But there cannot be any room for complacency because it is possible for the Indian economy to develop even faster and also to spread the benefits of this growth more widely than has been done thus far. Before going into details of the kinds of micro-structural changes that we need to conceptualize and then proceed to implement, it is worthwhile elaborating on the idea of inclusive growth that constitutes the defining concept behind this Government's various economic policies and decisions. A nation interested in inclusive growth views the same growth differently depending on whether the gains of the growth are heaped primarily on a small segment or shared widely by the population. The latter is cause for celebration but not the former. In other words, growth must not be treated as an end in itself but as an instrument for spreading prosperity to all. India's own past experience and the experience of other nations suggests that growth is necessary for eradicating poverty but it is not a sufficient condition. In other words, policies for promoting growth need to be complemented with policies to ensure that more and more people join' in the growth process and, further,· that there are mechanisms in place to redistribute some of the gains to those who are unable to partake in the market process and, hence, get left behind.
A simple way of giving this idea of inclusive growth a sharper form is to measure a nation's progress in terms of the progress of its poorest segment, for instance the bottom 20 per cent of the' population. One could measure the per capita income of the bottom quintile of the population and also calculate the growth rate of income; and evaluate our economic success in terms of these measures that pertain to the poorest segment. This approach is attractive because it does not ignore growth like some of the older heterodox criteria did. It simply looks at the growth of income of the poorest sections of the population. It also ensures that those who are outside of the bottom quintile do not get ignored. If that were done, then those people would in all likelihood drop down into the bottom quintile and so would automatically become a direct target of our policies. Hence the criterion being suggested here is a statistical summing up of the idea of inclusive growth, which, in turn, leads to two corollaries: to wish that India must strive to achieve high growth and that we must work to ensure that the weakest segments benefit from the growth.

 

Q.Consider the following statements: According to the author, India's economy his grown but there is no room for complacency as

1. growth eradicates poverty.

2. growth has resulted in prosperity all.

Which of the statements given above is/a correct?
 

Detailed Solution for UPSC Prelims Past Year Paper 2014: Paper 2 (CSAT) - Question 29

The author does not mention any of these. He mentions the opposite that growth has not been able to life large number of people from poverty; and distribution needs to be looked at.

UPSC Prelims Past Year Paper 2014: Paper 2 (CSAT) - Question 30

It is easy for the government to control State-owned companies through nods and winks. So what really needs to be done as first step is to put petrol pricing on a transparent formula - if the price of crude is x and the exchange rate y, then every month or fortnight, the government announces a maximum price of petrol, which anybody can work out from the x and Y. The rule has to be worked out to make sure that the oil-marketing can, in general, cover their costs. This will mean that if one company can innovate and cut costs, it will make greater profits. Hence, firms will be more prone to innovate and be efficient under this system. Once the rule is announced, there should be no interference by the government. If this is done for a while, private companies will re-enter this market. And once a sufficient number of them are in the fray, we can remove the rule-based pricing and leave it truly to the market (subject to, of course, the usual relations of anti-trust and other competition laws).

Q.Consider the following statements: According to the passage, an oil company can make greater profits, if a transparent formula for petrol pricing is announced every fortnight or month, by

1. promoting its sales.

2. undertaking innovation.

3. cutting costs.

4. selling its equity shares at higher prices. Which of the statements given above is/are correct?

Detailed Solution for UPSC Prelims Past Year Paper 2014: Paper 2 (CSAT) - Question 30

B is the correct option. Given the paragraph itself (explicitly) This will mean that if one company can “innovate and cut costs”, it will make greater profits.

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